Second hand gold

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Gold bullion, coins, jewellery and other gold items not sold by the original manufacturers or refineries can be classed as second hand gold. Anything made from, or containing, gold will have a value equal to the current market value of the gold. Broken gold jewellery may, for example, be worthless as a possession but the gold it contains still has an intrinsic value.

In contrast, a rare numismatic gold coin will have value as both pure gold and as a collectible coin.

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Secondary gold market

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The 'gold market' generally refers to the international commodities trading which determines the gold market spot price. This international gold price affects the price of all items made from or containing gold.

Second-hand or pre-owned gold is traded on what is referred to as the 'secondary gold market' . The price of gold on the secondary market is still determined by the gold spot price, but it is also influenced by many other factors. Supply and demand, plus the desirability of the item, can add to the gold value, or it can take away.

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Pre-owned gold bars

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From the perspective of an investor in physical gold, the shape and form of gold has little consequence - beyond tradability, storage and insurance issues. Despite this, brand new gold bars, bought through a dealer direct from refineries are usually slightly more expensive than second hand bars.

Many bullion dealers such as ourselves offer pre-owned gold bullion bars at a discounted premium compared to brand new bullion, as an incentive for customers who can sometimes be wary of buying second-hand gold.

At BullionByPost we are strict with our inspection requirements of all gold and silver coins and bars, ensuring all of our products are of the correct purity and weight, but also of acceptable condition.

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Second hand gold coins

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With the exception of numismatic or collectible coins, the savings on gold coins is usually greater than with gold bars. Dealers will sell second hand coins, sometimes of mixed years or currencies, for less than brand new coins to tempt investors.

Many gold coins are minted at 999.9 purity, but some are from alloys of gold and other metals, which means the gold weight is less than the actual weight of the coin. 22-carat gold coins such as the Gold Sovereign or Gold Krugerrand are prime examples of coins made up of 92.5% gold and 7.5% copper.

BullionByPost has a large selection of second hand bars and our 'Best Value' coins, offering some of the lowest ounce for ounce gold prices.

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Scrap gold

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Even though savings can be made when purchasing through the secondary gold market, the major value of all these items is essentially determined by the market price of gold.

Bullion dealers will generally buy back gold on the basis of the gold weight and the current market price. Rarely is the item's condition of any consequence. Sellers of scrap gold, jewellery, coins and bars will generally receive the market value of their pure gold weight, minus a small dealer fee.

At BullionByPost we offer 96% buy-back rate for gold coins and bars, and offer similarly competitive rates for scrap gold - whether coins, bars, or jewellery. Visit our Scrap Gold page for price estimates based on the weight and carat of your gold, or call our helpful support team on 0121 634 8060.